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Buying a Home - How do I determine the initial offer?

Unless you have a buyer's agent, remember that the agent works for the seller. Make a point of asking him or her to keep your discussions and information confidential. Listen to your real estate agent's advice, but follow your own instincts on deciding a fair price.

Calculating your offer should involve several factors:

  • What homes sell for in the area.
  • The home's condition.
  • How long it's been on the market.
  • Financing terms.
  • The seller's situation.

By the time you're ready to make an offer, you should have a good idea of what the home is worth and what you can afford. And, be prepared for give-and-take negotiation, which is very common when buying a home. The buyer and seller may often go back and forth until they can agree on a price.

>> Learn how an earnest money deposit is used when buying a home   

 

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